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Old 04-16-2014, 05:07 PM
 
1,107 posts, read 1,873,174 times
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How does a low wage worker retire? I doubt if they do. They just work till they drop or end up in a nursing home. I was a relatively high wage earner until unforseen circumstances took all my savings and my employment. I am receiving SS Disability and have a small pension and a very part time job. Its all I can handle. I am barely making it and have no idea when I will actually be able to quit working. No chance for savings at this point in my life. Sometimes there are catastrophic circumstances and you are not able to recover.
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Old 04-16-2014, 05:37 PM
 
Location: Forests of Maine
30,670 posts, read 49,416,421 times
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Quote:
Originally Posted by anifani821 View Post
... Statistics show that there are thousands across the country who have only SS to rely upon - often no more than $700 a month.
We have a number of retired friends whose monthly SS is less than $700.



Quote:
Originally Posted by MG120 View Post
Again, the average person on this forum is not indicative of the average American.

20 dollars an hours is NOT low income.
I agree.



Quote:
Originally Posted by PastTense01 View Post
Note there are three major costs retired people shouldn't have:
1. Cost of raising children
2. Cost of employment (business clothing to gasoline...)
3. Cost of mortgage (you should be able to pay off a 20 year mortgage in a 40 year working life--although this doesn't apply to people who keep trading up to fancier and fancier homes)

But basically I doubt if most of the posters here understand how the lower 20% of the population can possibly survive because they don't have a middle class income.
Exactly.

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Old 04-16-2014, 07:16 PM
 
Location: Baltimore, MD
3,745 posts, read 4,213,572 times
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Quote:
Originally Posted by brightdoglover View Post
Regarding ALFs and Medicaid- I thought ALFs were all out of pocket, and that Medicaid only kicks in for skilled nursing homes.

Many states extend Medicaid to those residing in ALFs.

A lot of old/older people don't need to be "cared for," they need more money than they have for the normal bills of daily living.

For the poster who referred to "being on the dole" with SSI- you don't don't get it unless you paid in for the proper amount of time. That's not "the dole."
SSI is Supplemental Security Income, NOT Social Security benefits. The poster, Nomoresnowforme, is receiving SSI, a cash benefit for the disabled/elderly poor. There is no special "paying in" and it is commonly referred to as welfare or "being on the dole". I prefer the term "being on the dole".
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Old 04-16-2014, 07:24 PM
 
Location: Tucson/Nogales
17,370 posts, read 21,213,499 times
Reputation: 24195
Quote:
Originally Posted by PastTense01 View Post

But basically I doubt if most of the posters here understand how the lower 20% of the population can possibly survive because they don't have a middle class income.
I agree! I'm guessing the majority of those with a middle class income haven't ridden a public bus ever, and missing out on how enjoyable it can be, to ride the public bus, or riding their bikes to a grocery store!

As cars become more high-tech, increasingly expensive to repair (even changing light bulbs can blow a hold in your budget, or losing your Fob, not including expected traffic fines!) this is one expense that won't figure into my $1200 a month budget, except an occasional bike repair expense! And my house will be paid for!

Now if I didn't have a house that was paid for, I'd be looking at uncomfortable poverty!
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Old 04-16-2014, 07:45 PM
 
Location: Grove City, Ohio
10,128 posts, read 12,373,396 times
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Quote:
Originally Posted by markg91359 View Post
I would suggest they pick a part of the country where the cost of living is lower. I'm thinking places like Oklahoma, Mississippi, Arkansas, Alabama, etc. Another option might be living out in the desert somewhere. I rather like winters in the desert, so that wouldn't bother me much.

Social Security is there for them and it may not be much. However, it should keep a roof over their heads and food on the table. I seriously recommend people in bad financial shape consider living in a trailer home in a decent trailer court (there are many of them). It may be possible to get a part time job as a greeter or such at Walmart.

Poverty has always been a problem for every country and for all people. Many of us are able to do some financial planning to prepare for retirement. I am not opposed to helping out the true hardship cases. However, I don't regard a "hardship case" as someone who always did the bare minimum of work to get through life. There is segment of the population that thinks like that and I don't think the rest of us are obligated to take care of them.
Part of the problem for many is 44% of those receiving social security opted to start taking it at age 62 which, with a couple exceptions, his a huge mistake.

1) If you have a terminal illness take whatever you can, you deserve it and

2) Some people, especially in this economic downturn, lost jobs at age 58, went through all their retirement savings barely making it to age 62 when they felt they had to take it or live on nothing.



But to just take it when you really don't need it, because it is there, is a real stupid mistake in my opinion.

Taking it early is one of the biggest reasons some recipients have low amounts.

Looking at the chart on the bottom if someone can simply (easier said than done for some) work to age 70 they can dearly double their monthly check from $1,500 to to $2,640 by simply working eight more years.
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Old 04-16-2014, 08:24 PM
 
4,649 posts, read 6,476,826 times
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When a person gets to age 62 how long do they expect to live? I say retire as soon as you can. Do it on your terms or life will make the decision for you. My option age is going to be age 60. That's just me.
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Old 04-16-2014, 10:27 PM
 
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My option is going to be age 70. I love what I do, I don't need the Social Security if I am working, and I *do* need a bigger Social Security check when I retire. I find it astonishing that only about 1% of people wait until 70 to claim their benefit. Maybe they don't believe that the benefit will really increase past 66, but it will.
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Old 04-16-2014, 10:44 PM
 
13,313 posts, read 25,542,533 times
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Quote:
Originally Posted by lenora View Post
SSI is Supplemental Security Income, NOT Social Security benefits. The poster, Nomoresnowforme, is receiving SSI, a cash benefit for the disabled/elderly poor. There is no special "paying in" and it is commonly referred to as welfare or "being on the dole". I prefer the term "being on the dole".
Thank you for the correction. I was thinking of SSDI, I guess.
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Old 04-17-2014, 02:36 AM
 
Location: Maryland Eastern Shore
969 posts, read 2,518,887 times
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Quote:
Originally Posted by nicet4 View Post
Part of the problem for many is 44% of those receiving social security opted to start taking it at age 62 which, with a couple exceptions, his a huge mistake.

1) If you have a terminal illness take whatever you can, you deserve it and

2) Some people, especially in this economic downturn, lost jobs at age 58, went through all their retirement savings barely making it to age 62 when they felt they had to take it or live on nothing.



But to just take it when you really don't need it, because it is there, is a real stupid mistake in my opinion.

Taking it early is one of the biggest reasons some recipients have low amounts.

Looking at the chart on the bottom if someone can simply (easier said than done for some) work to age 70 they can dearly double their monthly check from $1,500 to to $2,640 by simply working eight more years.
Your post is very informative and I appreciate you taking the time to chart it all out.
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Old 04-17-2014, 04:39 AM
 
Location: Grove City, Ohio
10,128 posts, read 12,373,396 times
Reputation: 13936
Quote:
Originally Posted by Larry Siegel View Post
My option is going to be age 70. I love what I do, I don't need the Social Security if I am working, and I *do* need a bigger Social Security check when I retire. I find it astonishing that only about 1% of people wait until 70 to claim their benefit. Maybe they don't believe that the benefit will really increase past 66, but it will.
Many of us don't have the retirement savings we told we should have and one of those reasons might be life got in the way. Some had dire circumstances come up and bite us, some had moments of stupidty where we spent money when we should not have. It happens.

I am one of those that didn't save what I was told I should have and the best way for me to make up for my past sins is to work a little longer.

I am 66, still working and 4 more years really isn't that far away. My hope is to be one of the few that doesn't collect until age 70.

The earliest I plan to collect, baring illness or becoming unable to work, is age 68 which is when my wife will turn 66 and start collecting her benefit which will be 50% of my FRA benefit.

My FRA benefit was estimated to be $2,250 so my wife will collect $1,125 as long as she delays taking it until age 66 which she definitely will. Meanwhile, by waiting two more years, my benefit will increase by 8% per year, 16% for two years, to $2,610 or $360. At this time our combined income will be $3,735 and we have structured our lives to be able to live very comfortably on that social security alone which isn't hard to do when you that income is totally free of federal and state taxes.

Another way to look at it is what kind of hourly wage does one require to take home $862.58 weekly after taxes? That is easily equivalent to a $27/hr job There are men in this country raising children and paying a mortgage on less than that so if a pair of seniors can't live on that when they don't have kids to support, debts or a mortgage something is seriously wrong with their spending habits.

68 is my goal but if I can, and I will if I can, 70 would be better. 32% more of $2,970 which will give us a combined ss benefit of $4,095 and being free of taxes we will do very well on that.

By working four more years that $720 monthly increase in benefits means going out to dinner once a week and paying for all our combined Medicare Part B payments, Plan F supplement costs, Part D pharmacy supplement, deductibles on medications and dental insurance.

$720 monthly, how much would I have to had to save to withdraw $720 every month for 15 years? Six figures at least.

Another thing to consider is we guys who are married will, in all likelihood, have our wives outlive us. I don't know about your wife but my wife can live a whole lot better on $2,970 than $1,687 which would have been the amount if I had started to collect at age 62. If something happens to me I will feel a whole lot better knowing I took care of her.

Savings? We got some, not what some people tell us we should have, but if I can work another two years I can't see why we would need it. (We do have long term health insurance).

Working a couple few years longer...makes up for a lot of past sins.

Quote:
Originally Posted by Grasonville View Post
Your post is very informative and I appreciate you taking the time to chart it all out.
You are welcome.
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